The DXY measures USD strength against a basket of currencies and weightings, and is closely watched by every serious market analyst. Therefore, looking at it directly for technical patterns and signals provides a trader with "what if" scenarios that can be applied to pair markets. E.g. if EUR/USD and DXY have matching signals, then that's a certain degree of confirmation to your idea. Note that this isn't the best example as EUR/USD is the biggest chunk of the DXY calculation.
Anyway, moving on...
DXY as at 31 October 2018 is sitting at a make or break level for the USD. It's been on a bull run since April, but has steadily been losing momentum over the last few months. Now, you should have been a USD bull in the absence of any contrary signals, and until today we haven't had any strong confluence. But with DXY sitting at a strong weekly (indicator is of my own making - I'll provide screenshots below), with clear decreasing momentum (measured both by an indicator and swing angles), and a that has formed on the Daily/Weekly charts, we now have a trifecta of signals that should give us, at the very least, a strong pause.
I'm not advocating that you suddenly rush out and long every XXX/USD pair you can find, as markets are chaotic and no analysis is worth a cent until you get confirmation. So, for me, confirmation is going to be a strong WEEKLY rejection from 97 on the DXY - at which point I'll tentatively start shorting the dollar.
Trade safe. Risk management is everything.
So, if the DXY is still rising, slightly, you have to look at why. In our case it's the USD/JPY rampage this morning after weak JPY economic figures.